Mutual Funds: Growth or dividend option?

The question of investing in mutual funds is a no brainer, especially for those of you who want to achieve your financial goals (i.e. Everyone!). However, even after selecting the right fund for you, assessing your risk appetite, and making the optimum asset allocation, there remains the question of whether to go in for the growth option or the dividend option. This confusion is further compounded with the dividend re-investment option. The selection of the option is as important as the selection of the mutual fund itself. Let us take a look at these options in more detail.